Warner Bros. Discovery reported stronger-than-expected revenue growth from its streaming business on Wednesday, driven by robust international expansion of HBO Max that boosted both subscriber numbers and user engagement.
The positive streaming results came as the company posted a significantly wider first-quarter net loss of $2.92 billion. The loss included a $2.8 billion termination fee paid to Netflix. Although Paramount Skydance actually paid the fee as part of their $110 billion merger agreement, Warner Bros.
Discovery recorded it as an obligation under the terms of the deal.
The streaming division’s outperformance highlights HBO Max’s successful push into overseas markets. International growth helped drive higher subscriber additions and increased viewing time across the platform, providing a bright spot amid broader financial pressures.
This revenue beat suggests that Warner Bros. Discovery’s direct-to-consumer strategy continues to gain traction even as the company navigates a challenging media landscape.
The $2.92 billion net loss reflects the substantial $2.8 billion Netflix termination payment, which significantly inflated quarterly expenses. This fee stems from a prior agreement that was terminated in connection with the Paramount Skydance merger. While Paramount Skydance handled the actual payment, Warner Bros. Discovery’s accounting treatment of the obligation contributed directly to the deepened loss for the period.